Asset life Expired

[Former Member]

Hi,

we have an asset whose life is expired in 2007. Yet, The asset has huge book value. What are the options I have in this regard...!!!!

BR.......AJ

[MarkusBredel · Accepted solution]

Hi,

if you always want to assure that the net book value is zero at the end of the useful life of an asset, you should set up your depreciation keys that way that they calculate depreciation based on the remaining useful life.

I guess your current setup does not depreciate from remaining useful life for this asset. In that case I would recommend the solution Paul stated already. Create a new phase at the depreciation key, valid after end of useful life. Set a changeover method in the depreciation key to changeover to this phase after end of useful life. The base method used in the phase after end of useful life should be "immediate depreciation".

Regards,

Markus

[Former Member]

Hi Expired use ful live is not important in asset accounting the asset is still in the system (actual reports)until you retired the asset.

Do it have a net book value?

When this is the case you can do a unplaned depreciation.

What is the problem when there is still a net book value?

Dependend of your depreciation key it will going on with/ or no depreciation.

In our system we have set up a rule in the depreciation keys that on the end of the use full live to go to phase 2 and phase 2 is Ordinary: immediate deprec. (after end of life)

[srinivasa_maruvada]

Hi

Asset is showing net book value since you are calculating depreciation based on % and not based on useful life and therefore no impact of useful life on asset and keep the useful life as it is or extend it

Cheers

Srinivas